Archive for June 1st, 2010

Deeper Analysis

U.S./Euro Area Manufacturing PMI Spread Shows Widest Advantage in Four Months

June 1, 2010

The purchasing manager indices fell in May by 1.8 points in Euroland but just 0.7 points in the United States.  The differential between those two readings increased 1.1 points as a result to its greatest width since January despite a near 20% appreciation of the dollar against the euro since November.  Manufacturing is export-intensive, so […] More

Central Bank Watch

First Bank of Canada Rate Hike Since July 2007

June 1, 2010

Canadian monetary policy has been tightened as officials had hinted was their strong intention.  However, effort has been made to dampen concern that the central bank is now off to the policy normalizing races: Given considerable uncertainty surrounding the outlook, any further reduction of monetary stimulus would have to be weigned carefully against domestic and […] More

Central Bank Watch

No Hint of When Australian Rate Increases Might Resume

June 1, 2010

The Reserve Bank of Australia left its Official Cash Rate (OCR) at 4.5%, matching analyst expectations.  Officials had dropped many hints that policy is now on pause.  There had previously been six rate hikes of 25 basis points each, starting last October and with follow-up moves in November, December, March, April and May.  No central […] More

New Overnight Developments Abroad - Daily Update

Another Wave of Risk Aversion Hits All Markets

June 1, 2010

The dollar advanced 1.6% against the Australian dollar, 1.3% versus the euro and Swissy, 1.1% against the kiwi, and 0.7% relative to the Canadian dollar.  The dollar has only edged 0.1% higher against sterling and has lost 0.4% to the yen.  Rumors of more sovereign debt downgrades have surfaced.  Concern about the catastrophic ecological disaster […] More

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